In a remarkable display of resilience and growth, Marriott International (NASDAQ:MAR)'s stock has reached an all-time high, touching a price level of $289.15. This milestone underscores the company's robust recovery trajectory and investor confidence in the hospitality giant's future. Over the past year, Marriott has seen its stock value surge by an impressive 38.17%, a testament to its strategic initiatives and the rebounding travel industry post-pandemic. The all-time high represents not just a 52-week peak but the highest valuation the company's shares have ever achieved, marking a significant moment in Marriott's financial history.
In other recent news, Marriott International's third-quarter results showed a nearly 6% year-over-year increase in net rooms and a 3% rise in global revenue per available room. TD Cowen maintained its Buy rating on Marriott but reduced the stock's price target from $295.00 to $283.00, reflecting adjustments due to Marriott's recent performance and future expectations. BMO Capital Markets, Mizuho (NYSE:MFG) Securities, Baird, and Goldman Sachs all raised their price targets for Marriott, citing factors such as cost-saving plans and anticipated improvements in organic net unit growth.
Marriott has announced a significant cost reduction plan, aiming to cut $80-90 million in General and Administrative expenses, a move expected to contribute positively to the company's financials. Despite challenges in Greater China and flat leisure demand, Marriott has implemented cost-saving initiatives and anticipates restructuring charges in the fourth quarter. These are recent developments in the company's financial landscape.
Analysts from various firms, including Goldman Sachs, have adjusted their 2025 EBITDA estimates for Marriott based on these developments. The firm's 2025 EBITDA projection has been slightly raised to $5.41 billion, while the earnings per share estimate has been marginally lowered to $10.48. These adjustments reflect the analysts' continued confidence in Marriott's long-term growth potential despite near-term challenges.
InvestingPro Insights
Marriott International's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $80.21 billion, reflecting its dominant position in the hospitality industry. Marriott's strong financial health is evident in its gross profit margin of 81.95% for the last twelve months as of Q3 2024, which InvestingPro Tips highlight as "impressive gross profit margins."
The stock's momentum is further supported by InvestingPro data showing a robust 26.49% price total return over the past three months, aligning with the article's mention of the 38.17% surge over the past year. This performance is captured in the InvestingPro Tip noting a "strong return over the last three months."
Additionally, Marriott has been rewarding shareholders, with an InvestingPro Tip pointing out that the company "has raised its dividend for 3 consecutive years." This commitment to shareholder value, combined with the stock trading near its 52-week high (99.85% of the high, to be precise), reinforces the positive sentiment surrounding Marriott's shares.
For investors seeking a deeper understanding of Marriott's financial position and future prospects, InvestingPro offers 13 additional tips, providing a comprehensive analysis to inform investment decisions.
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